I've modded my own Grado cartridges, based on the article in AB, and also based on furhter info Frank gave out at one point.
I don't see that Frank or Wayner are charging too much for these. They're not going to be doing huge volume, so they're not going to get a major discount from Grado. Then, as they said, you lose some during the process. They also have to make a profit, and they have to provide support, and all the incidental costs that are part of running a business.
Don't buy one if you don't want to, or else try modding your own. But I don't see that you can really complain about the price.
As for how they sound, I'd say they're one of the best cartridges on the market. I'm not sure why people don't like Grado, unless it's that they're used to the skewed FR of moving coil cartridges and don't recognize when they get a cartridge that does things the right way. (Or maybe they've chosen speakers that make their moving coil cartridge sound "right," so they then don't like the result when a more accurate cartridge is used (or a CD Player for that matter).